The Emergence of Impact Investing in Ghana: Challenges and Opportunities

Abstract

The study set out to examine the emergence of impact investing in Ghana. The research is to identify what the challenges to the growth of Impact Investing (II) in Ghana are, whiles exploring who the key actors are and the opportunities available to these actors and potential actors. To help reach the set out aim, the following question were asked:

1. What is the current landscape of II in Ghana? 2. What are the major challenges to the growth of II in Ghana? 3. What opportunities exist for II in Ghana? 4. Who are the main actors for II in Ghana and what would be needed to accelerate growth of II in Ghana.

To help with a good understanding of the concept of II in Ghana, the term is defined and its components carefully explained and discussed. This is done to ensure that there is understanding of the field since it is a new and emerging field of study. This study, being exploratory in nature, a qualitative research method was used to map current scene of II in Ghana, and this was done by recording interview sessions with some industry players. Due to the limited literature and data, the snowballing sampling technique was used.

From the research findings, several challenges to the growth of II in Ghana were found including the lack of capacity by industry actors, the need for education of the public on the new concept of II and what it requires, since II requires a total change in mind-set from philanthropy to investing for returns. There is also the challenge of appropriate investible funding as well as investible businesses, not to mention policy guidelines. Respondents also listed some opportunities for II in Ghana, indicating that there is the need for private sector to drive change since government cannot do so by itself. The case for the attainment of the SDGs serves as another identified opportunity for II in Ghana. KEYWORDS: impact investng, socially responsible investing, ESG, moral investing